CORRECT: Gentrack IPO priced at $2.40

CORRECT: Gentrack IPO priced at $2.40, raising $36 mln
of new capital

(Fixes listing date in 7th graph)

By
Paul McBeth

June 6 (BusinessDesk) - Gentrack Group, which
develops utilities and airports software, will sell its
shares at $2.40 in this month's initial public offer,
raising $36 million of new capital, and letting its owners
sell down their holdings.

The company will sell 15 million
new shares and the existing owners will sell 26.3 million
for a total offer of $99.1 million after the price was set
in a bookbuild process for institutional investors and
participating brokers, Auckland-based Gentrack said in a
statement. The price is near the top end of the $2 to $2.50
range touted when the prospectus was lodged last month. The
price implies Gentrack will have a market value of $174.5
million, which would make it the 62nd biggest company on the
NZX All Index.

The new funds raised will go to paying down
Gentrack's debt, and the existing shareholders will keep
about 43.2 percent of the company after the
sale.

"Gentrack is heartened by the keen interest from
institutional investors in New Zealand and Australia, as
well as strong retail interest," chairman John Clifford
said. "The successful IPO positions the company to build on
its strong track record of delivering mission critical
software solutions to customers in New Zealand and
overseas."

The company’s two software products are
Gentrack Velocity, a billing product for energy and water
utilities, and airport management system Airport 20/20. The
products had originally been developed by Talgentra, an
Auckland-based company that was sold to Australian metering
company Bayard and ANZ Capital in 2009.

Clifford and
executive director James Docking, who has run the Gentrack
business since 1995, teamed up to buy Talgentra in 2012.
Gentrack has 150 utility and airport customers in 20
countries, and employs 180 people in offices in Auckland,
Melbourne and London, according to its statement. Sales in
the 12 months ended Sept. 31, 2013, were $40 million,
generating a profit of $6.6 million.

The retail offer,
which is open to the clients of participating brokers, opens
on June 9 and closes on June 20, with listing on the NZX and
ASX expected on June
25.

The Wellington-based BusinessDesk team led by former Bloomberg Asian top editor Jonathan Underhill and Qantas Award-winning journalist and commentator Pattrick Smellie provides a daily news feed for a serious business audience.

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